Final Salary Pension Average GBP5 472
Published / Last Updated on 27/07/2008
Final Salary Pension Average £5,472
Incomes Data Services (IDS) research reveals, the average pension paid out by final salary occupational pension schemes is £5,472 per year. The research firm analysed trustees’ reports with accounting periods ending in December 2007 or March/April 2007 - found the average final salary payment increased by 3.2 per cent compared with the preceding year. The total expenditure on payments to pensioners rose 4.4 per cent, from £12.6bn to £13.1bn.
Our view
We suggest that given improvements in life expectancy combined with recent inflation increases will lead to more final salary pensions funds being closed. In short, employers will no longer be able to afford them.
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